Baku, Azerbaijan, Oct. 4
By Azad Hasanli - Trend:
Loans on the line of the Azerbaijan Mortgage Fund (AMF) under the Central Bank was granted in the amount of 73.2 million AZN in January-August 2014, which is 8 percent less than the volume of financing compared to the same period last year, the statistical report of the Azerbaijani Central Bank said.
Since the beginning of the financing on the line of the Azerbaijan Mortgage Fund (AMF) mortgages worth 606.29 million AZN were issued, including 112.9 million AZN in 2013, 74.77 million AZN in 2012, 95.64 million AZN in 2011 , 97.08 million AZN in 2010, 76.9 million AZN in 2009, 70.2 million AZN in 2007, and 5.6 million AZN in 2006.
During the first eight months of 2014 the total amount of refinancing of loans allocated by the banks earlier made up 78.5 million AZN, the report said.
The average amount issued by authorized banks of the AMF is 39.978 AZN, the average loan size - 278 AZN, the interest rate - 6.82 percent, the average monthly payment - 318.7 AZN.
The maximum size of a conventional mortgage through the AMF is 50,000 AZN at a rate of 8 percent and a maturity of 25 years. The size of a social mortgage is 50,000 AZN at an annual rate of 4 percent and the term of 30 years. The initial payment under the social mortgage is 15 percent, while for a conventional loans - 20 percent.
Mortgage terms are as follows: loans must be issued in national currency, manat, and only to the citizens of Azerbaijan, the subject of the mortgage can only be an apartment or private house, the amount of the mortgage should not exceed 80 percent of the market value of the property, the monthly payment for a loan must not exceed 70 percent of monthly income of the borrower, the presence of an agreement on life insurance and other conditions.
Preferable conditions are granted to members of families of war victims, families of National Heroes of Azerbaijan, internally displaced persons, civil servants with at least a three years' experience, candidates and doctors of science, persons making special contributions to sport, as well as the military with at least a three-year service term. Each family having the right to such a mortgage loan can use the opportunity only once.
Today the authorized banks of the AMF are 28 banks [the country has 44 banks]. The participants of the mortgage market are also 21 insurance companies [28 in total] and 14 appraisal organizations.
The official exchange rate on Oct.4 is 0.7844 AZN / USD.